By Scott Miller
Staff Writer

COLUMBIA -- Gov. Mark Sanford will sign legislation today allowing small businesses to band together to buy health insurance for their employees, his office announced.

While noting the legislation won’t be the silver bullet that cuts health care costs for good, Sanford has listed it among his top three priorities, naming it alongside highly publicized proposals to reform immigration and DUI laws.

The measure will allow a group of at least 10 employers to pool their purchasing power when negotiating insurance rates. The existing law required insurance cooperatives to have at least 1,000 eligible employees.

Advocates have said businesses could save 20%, but the bill’s true impact remains unknown.

The S.C. Chamber of Commerce has said the bill likely won’t change the law enough to benefit small businesses. Currently, only about 40% of businesses with fewer than 50 employees can afford to provide health insurance, according to figures from the chamber.

Many of the restrictions from the previous law remain in place. Businesses still must partner with “common” industries, and co-ops still can’t exclude members because of previous claims experience or risk.

For more on health insurance co-ops, read the Feb. 18 edition of the Charleston Regional Business Journal.